Microsoft will launch a $100 Xbox Lite next year before releasing its next-generation console sometime afterwards, according to leaked plans.

Microsoft will launch a $100 Xbox Lite next year before releasing its next-generation console sometime afterwards, according to leaked plans.

A well-known leaker of Microsoft plans, a user who goes by the name MS Nerd, shared that the Xbox Lite, previously codenamed Xbox Loop, will feature an ARM processor, will be significantly cheaper than existing models, and will launch in late 2013, possibly just in time for the Christmas shopping season.

It's not exactly clear what will be axed from the Lite version to make it so cheap, as it will run games, media apps and will work with the Kinect. Its graphics power might be toned down or Microsoft might just be taking a big hit on its profits from it to make it more affordable.

The next-generation Xbox, codenamed Xbox Next, which suggests a potential deviation from the expected name of Xbox 720, will launch some time after the Xbox Lite, but if the Lite launches in late 2013 it means we might not see the Next until 2014 or possibly later, giving Nintendo a further time advantage on its launch of the Wii U this year.

A new version of the Kinect is also expected to launch in 2015, which could coincide with the release of the new console. This would give Microsoft enough time to develop new features to help it steal the top slot form Nintendo, or at least keep it in second place ahead of Sony's next PlayStation.

Of course, until Microsoft or another trustworthy source validates this rumour we cannot take it for granted that this is what will happen. It could even be an elaborate ruse to keep Microsoft's real Xbox 720 plans under wraps, such as speculations that it will feature a tablet controller, no disc drive, and a projector gaming helmet.